Oil companies performing badly (SP) it reminds me of when I bought my first house, I saw and liked a nice one everything was fine and it was priced way under my expectation would loved to have snapped it up but found out it was on the edge of an area down for compulsory purchase potentially due to council slum clearance, but nothing was wrong with it or the rest of the houses in area but it was in council 20yr plan so was cash buyers only I had to pass. That was 50yrs ago, houses are all still there and quite desirable now. Oil has a going to be replaced order on it.
That sounds about right to me, all money paid to BP is after all costs so your conclusions on Enquests share is also after those costs, the clever bit was that it has never been a debt that was recoverable from Enquest it is from the net proceeds of Magnus alone, and was subject to interest. BP will have a legacy entitlement on 32.5% up to a total payment of $1bn from Enquest. The last $60m of interest bearing payments were payed in advance from new finance deal that means Enquest have put that £60m on the balance sheet hence we will not be liable for BP 32.5% payments till it is recovered from Magnus.
That is how I see it but always open to correction.
Hi L3
Agree the word Anticipates could cause confusion, I have read it to mean that is the anticipated time frame for the recovery of the $60m from BP's 37.5% I would have thought they had agreed with Enquest when offered the money in advance.
But could be wrong?
Hi Squif
On Magnus what is it's value to Enquest? I like everyone am annoyed that yet again we have failed to get all cylinders firing at a higher oil price period we should be raking it in, but it seems we are getting everything ready but failing to get things running smoothly. But to clarify Magnus still has plenty of oil and did not cost us very much up front and even that was recoverable, it has never been on the debt pile till now having paid up the $60m of BP's right to FCF on Magnus. That is why Enquest have noted that we will be entitled to 100% of Magnus FCF till about April when I presume they will have recovered that $60m what would be nice to know is how much of BP's potential $1b they have left it is not a debt just a right to FCF after costs and no interest is due on that remaining right.
BP has received all it's money from the 37.5% of FCF after costs so Enquest have benefitted from running Magnus by 62.5% of that FCF after costs.
So to be clear our income from Magnus will go up till we have recovered extra $60m in short term.
As BP have recovered its money perhaps Enquest should reflect on Shareholders getting the $100m they stumped up with dividends becoming a priority now.
Hi romaron
We are under UK stewardship and The activist are powerful here but we also run a power Hungary Economy and also rely heavily on oil by products after COP we have cries of stop the oil now! but that is impossible you only have to look at reaction to shortage of gas. If UK fails to sanction fields on principle they will be liable to litigation for recovery of costs, that could run into billions they granted licence to find oil and develop it. We may get the first stage of weaning off oil by UK saying they will not issue anymore licence's for future exploration? Of course new developments will be stricter on environmental impacts, but better to be in control of those than importing the pollution as we usually chose to do.
Hi Jan
Yes I have been in to long as well and am all in Financially but hold a chunk of Bonds that have done well and have taken the Gamble that Equity should do better from here on in.
Enquest have a Guidance of 46k to 52k net and have not informed market this has changed as yet, but have told individual share holder's they are aware of their duties! we are due an update soon anyway, and I dare say Kraken restricted production will be top of list, hopefully they will have solution done or know when it will happen by then, in mean time the extra from Malay and Magnus must have pushed us a bit over the 46k net to make a RNS in the short term not required.
And of coarse we have GE to build into any revised figure for rest of year. I dare say market will judge and hold us down until year end figures.
Enquest must realise that if they don't make share holder returns till we have cleared Debt then by then governments will be putting windfall taxes on oil company profits so nothing is gained by delaying a well deserved dividend.
Jan2
I been out all day just catching up on posts. I liked your post on my ramp, it was a tongue in check one though! I did say if the story is true, it should double.
I Honestly think the market rarely moves because of any post on a BB and will never move because of one of my posts. But if it doubles in price in the next month remember I suggested it might.
Hi romaron
Accepted I may get my fag packet calculations wrong sometimes but never ramp or bull I do like constructive negative posts am fully aware you have to be careful if it sounds too good to be true it usually is? If anyone can see the negative in Enquest post and debate it. I think the story is too good, if true share price should double in my view.
Tarmak
I think you can update much of your calculations on GE from the accounts in Prospectus 2 for Jan1st -31st March lots of details in it like realised oil price $50.8, $15.1m profit , production 11,717bpd Attributable net cash flow of $34.857m with tax to pay of $9.6m My assumption is $34.857 - $9.6m Tax is the figure to be credited from Enquests payment.
But would need a poster like L3 who would know the accountant speak to intemperate correctly.
Jan2
Suppose as shares had to be cancelled and reissued weekend was best technical time to do it. And they probably have to announce things before hand to abide by LSE rules. We may well get another RNS first thing Monday confirming new shares have been listed for 8am trading.
But I suspect the important bit about how much we handed over will not come out yet, hope it does?
Tonight we have no shares? 8am Monday we have new ones with exactly the same conditions but they will include the GE asset that has reversed into Enquests existing assets. Well that is how I read it, game is on as GE assets were valued as higher than Enquests it was a reverse takeover. That could be why market would not recognise Enquests new value till it has crossed the line? We will see next week onwards GE was bought for $17 a barrel, with oil at $85 what is todays value. $370m turned into $600m in 9 months AB is no fool.
romaron
She went for the High Temp Daiken that doesn't require change of rads As I say it works but expensive to run. Salesmen quote 4.5 cop but also quote high temp does not require Rad upgrade the two don't go together.
Hi romaron
I have a powrmatic vision 3.1kw through wall heat pump it is used as aircon in summer and heating when chilly and extra back up to gas heating when cold. As air to air it is absolutely brilliant brings cold room up to 24degre's in minutes and is very cheap to run. My sister has full Daikin high temp heat pump instalation with standard rads it works fine but cost above what her old oil system did. She has fitted a powrmatic and feels that two would keep bungalow warm a lot cheaper than her air to water neat pump. You only have to look in shops and pubs to see that air to air works I am convinced it would be a lot cheaper and more efficient to concentrate on heating the air than water in rads. And divert spare power from Solar panels to heat your hot water tank it cut my gas bill buy a third.